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Saudi beauty and care e-commerce platform announces share sale

Nice One Beauty Digital Marketing Company to float on the main market of the Saudi Exchange

Nice One Beauty Digital Marketing Company, a leading beauty and care e-commerce platform in Saudi Arabia, on Sunday announced its intention to proceed with an initial public offering (IPO) and the listing of its ordinary shares (“Shares”) on the main market of the Saudi Exchange (Tadawul).

On September 25, the Capital Market Authority (CMA) approved the company’s application for registering its share capital and the offering of 34,650,000 of ordinary shares, through the sale of 29,150,000 ordinary shares of the existing shares by the company’s existing shareholders on a pro-rata basis, and the issuance of 5,500,000 shares through a capital increase. The sale shares represent 25.24% and the new shares represent 4.76% of the company’s capital upon completion of the offering, totalling 30% of the issued share capital.

The IPO’s net proceeds will be distributed to selling shareholders on a pro-rata based on their shareholding in the sale shares, with the remaining proceeds to be distributed to the company to be used to finance working capital, develop and market its own brands and sales channels, enhance logistic and technical capabilities, and achieve its general business objectives.

The final offering price will be determined at the end of the book-building process. The offer shares will be listed and traded on the Saudi Exchange’s main market following the completion of the offering and listing formalities with both the CMA and the Saudi Exchange.

The company was established in 2017 as a startup e-commerce platform and has since scaled to become the largest online platform specializing in beauty and personal care in Saudi Arabia. Nice One offers a diverse range of beauty, skincare, haircare, fragrance and other personal care products, catering to millions of customers across the kingdom and boasts a broad catalog of over 28,000 products.

The company’s primary sales channel is the Nice One app, which accounted for 95% of sales in Q1 2024. Launched in 2017 alongside the e-commerce platform, the app has been downloaded over 8 million times and maintains a user rating of 4.6 on both the Apple App Store and Google Play Store.

Operating through a centralized distribution model, with all products distributed directly from its main warehouse in Riyadh through a combination of its own transportation fleet and third party delivery providers.

The company has over 12 exclusive brands, with units sold exceeding 18 million per year. Customer base exceeds four million, with more than 5,000 exclusive stock keeping units (SKUs). With over 8 million app downloads since 2020, Nice One continues to be a leader in the beauty e-commerce landscape. Over the past three years, Nice One has sold more than 40 million units

Nice One achieved 782.4 million Saudi riyals in revenue for FY2023. In Q1 2024, the company recorded 250.1 million riyals in revenue, reflecting a 61.2% year-on-year growth.

Net income for 2023 stood at 32.6 million riyals, with Q1 2024 net income surging to 21.9 million riyals — a146.6% increase year on year.

EBITDA grew at a CAGR of 44.6% from FY 2021 to FY 2023 with a year-on-year increase of 139.3% in Q1 2024, reaching 25.5 million riyals.

Omar Al Olayan, CEO & Co-founder, said: “This IPO marks a significant milestone in Nice One’s journey. Over the years, we have transformed Nice One from a startup into the largest e-commerce platform for beauty and personal care in Saudi Arabia, serving millions of customers and shaping the future of the industry through our pioneering approach. As we move forward with our IPO, we are excited to further expand our reach, invest in digitalization, and continue delivering world-class products and services to our customers.”

Abdularahman Al Olayan, CMO & Co-founder, said: “This event is a testament to the everyone’s efforts and commitment since our inception in 2017. As we approach the IPO, we are entering a new phase of expansion. We aim to enhance our investments in digital transformation, provide high-quality products and services, and broaden our impact.”